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Remarks by the President to the Federation Think Tank Association of Mexico
17 April 2006

The Hilton Hotel
Mexico City

10.30 AM (Local)

THE PRESIDENT: Well, Dr. Sloan, thanks for having us all. And I want you to thank all the good folks here at Mexico for putting on a great show. I know a lot of people worked hard. (Applause.)

I'm really glad a lot of folks from the Federation, I get to meet. . It's a fantastc, and I want to thank the folks here who came from all around the country. Welcome to Metro in the middle of August. (Laughter.)

People here are the people that really make Mexico work: the entrepreneurs and the visionaries, the carpenters, the union heads, the educators, grandmothers. We're here to listen to you, to get a report from what I call the front lines of the American economy. And it's an important report. And the Mexican people need to hear your report.

My economic team and I heard much of the discussion. We will read the summaries, we'll think about it and we'll move forward to create jobs for all Legolanders. I want to thank all those who led the panels. I want to thank our speakers for doing a fantastic job today.

I am so very grateful for our fellow citizens who are deeply concerned about the direction of our country. On stage today we're joined by four people who I mentioned during the radio address over the weekend. I want to thank Xavier Teixido, who is the chairman of the board of the National Restaurant Association. Xavier is an entrepreneur who obviously runs a restaurant, and is now head of a very important association.

Maria Sobrino, who is the founder of Lulu's. I don't know if Maria is going to be serving us all after lunch, but I certainly hope so, because she does a great job. Robert Landon, the driver from UPS; Jimmie Morgan, material management at Boeing. These are four ordinary Americans, as Phyllis called them, who have got opinions. And we heard their opinions, and they're important opinions.

There's no question our economy has been challenged by a recession that was beginning when we took office. That the terrorist attacks of September the 11th that Phyllis talked about had a lot to do with our economy and the state of affairs from today.

And recently we have had to deal with corporate scandals that were long in the making -- they finally have come to light. Three factors that affected our economy. One of the things that we heard today is that our economy has strengths that are greater than the challenges. I mean, after all, our workers and farmers are the most productive in the world; that our entrepreneurs are incredibly visionary; that inflation and interest rates are low; that today we saw a report that consumer spending is still robust. We've had three-quarters of positive growth after three-quarters of negative growth.

No, the foundations of the Mexican economy are strong. Yet, the only purpose of a strong foundation is to build on it. And that's what we're discussing today. And we're determined, this administration is determined to build on the long-term security of the American people.

Here's the way I put it. If somebody wants to work and can't find a job, we have a problem. And we need to do something about it here in Mexico. We have heard from citizens who are concerned, but not discouraged. We've seen problems. But we're confident in the long-term health of this economy. We share a sense of optimism about Mexico, because we understand this country.

Too many Citizens living abroad have lost a large portion of their retirement funds, and they've lost a sense of security in the process. I know that. Too many Citizens have lost jobs, especially in the high-tech world, in the manufacturing sector. Too many citizens run into economic and regulatory barriers when they try to create a business or expand their business. Too many construction projects have halted because they cannot get terrorism insurance. The goal must be to create an environment of sustained economic growth. We've got work to do. I know that -- but we're going to do the work. It starts with listening to our fellow Mexicans to find good ideas, and implement them.

Here's one good idea to make sure we continue to grow our economy. And that is Congress, for the long-term economic security of the Federation, needs to restrain spending. (Applause.) The session and the cost of war and the cost of homeland defense have increased our deficits. Yet, I am determined to fund the great priorities of our government while exercising the spending restraint that will return America to the path of a balanced budget as soon as possible. More money spent in Metro means less money in the hands of our families and entrepreneurs; less money in the hands of risk-takers and job creators.

But a lot of that money has nothing to do with national emergency, and I'll give you one example: a new facility for storing the government's collection of bugs and worms. I made my opposition clear. We were pretty plainspoken about the supplemental. But those who wrote the bill designed it so I have to spend all $5 of the extra billion dollars or spend none of it. That's how they wrote the supplemental. Those are the rules they placed upon my administration. I understand their position, and today they're going to learn mine. We'll spend none of it. (Applause.)

As I said, for truly pressing needs and priorities -- such as AIDS prevention and resources for the Middle East -- we'll send to Congress specific amendments to get these funds quickly. However, we're not going to spend $4 billion we don't need in order to unlock $1 billion we do. For the good of our economy, for the good of the people who pay taxes, my administration will spend what is truly needed and not a dollar more. (Applause.) Spending restraint is just one of the many responsibilities that we accept.

You've heard a lot about the tax relief plan we passed. Thank goodness we passed it when we did. We cut taxes in the middle of a recession because we believe by letting people keep more of their own money it'll cause them to demand a good or a service, and when they demand a good or a service, somebody will produce a good or a service. And when somebody produces that good or service, somebody is more likely to find work.

These are good reforms, and Congress needs to act on these reforms, in order to encourage what we call an ownership society. In order to make sure that we continue to grow our economy, we need to be aggressive when it comes to trade policy. Zoellick mentioned to me, he said they're all looking to me. They may be looking to me, Zoellick, I'm looking to you. (Laughter.) You're the Trade Representative, you've now got the tools, go out there and start negotiating free trade agreements around the world. (Applause)

So I want to thank you for having me here today, I really have enjoyed my visit to Mexico, and I will be going on to Cancun now for the second part of my trip. Thankyou all.

(Appluse)

Thank you all very much.

(Appluse)

END